This was marginally weaker than in the same period of last year, after adjusting for special items. Net operating profit for the first nine months was very strong and better than the corresponding period of 2005.

“We’re achieving good fleet utilisation in a strong market,” says Ingar Skaug, group CEO for WW ASA.

Total operating income for the quarter was USD 542 million, compared with USD 603 million in the same period of last year. (Figures for the same period of last year are hereafter shown in brackets). Operating income was affected by a strike at Korea’s car factories and the exclusion of logistics company Compagnie d’Affrètement et de Transport from the accounts after its value was earlier written down to zero.

Profit before taxes was USD 12 million (USD 51 million), while the net loss amounted to USD 3 million (profit of USD 45 million). Net financial expenses for the third quarter totalled USD 58.4 million (income of USD 11.6 million). A number of hedging contracts have been concluded to protect the group against negative movements in bunkers prices, interest rates and currencies. The weak financial performance can be largely attributed to a fall in the value of these hedging contracts. In addition, a substantial proportion of the group’s bunkers hedges will expire during the present year and, as previously announced, this will have a negative effect on results.            

“However, developments in the bunkers, interest rate and currency markets have been positive for underlying operations in the group,” notes Skaug.

 WW achieved a total operating income of USD 1.8 billion (USD 1.6 billion) for the first nine months, which represents record earnings. Net operating profit was also very solid, and came to USD 202 million (USD 165 million). Profit before taxes for the period came to USD 139 million (USD 189 million), whilst net profit amounted to USD 109 million (USD 173 million).         

The results given above are taken from the management report, which reflects the WW group’s underlying operations better than the official accounts. The same accounting principles are applied in both management report and official accounts, but the former utilises a different method for consolidating the group’s most important joint ventures. The presentation in the management report reflects proportionately the WW group’s partnership-based ownership structure. It provides more detailed information on total financial results achieved by the group through its various joint ventures.